Chenoa Fund 2025 Maryland Down Payment Assistance
Introduction:
If you’re looking to buy a home but are struggling with the upfront costs, the Chenoa Fund Maryland Down Payment Assistance might be the solution you need. Available across all 50 states and Washington, D.C., this Maryland down payment assistance program offers eligible buyers the chance to secure a home with less out-of-pocket expense. In this post, I’ll explain how the Chenoa Fund Maryland Down Payment Assistance works, its eligibility requirements, and the pros and cons of its two down payment assistance options.
Everything You Need to Know About the Chenoa Fund Maryland Down Payment Assistance Program👊
What is the Chenoa Fund?
The Chenoa Fund Maryland Down Payment Assistance is a government-backed down payment assistance program designed to help homebuyers purchase a property with less money upfront. The program is available to people in all 50 states, as well as Washington, D.C., and it’s especially helpful for those who may be having difficulty saving for a down payment.
Eligibility Requirements
To qualify for the Chenoa Fund Maryland Down Payment Assistance, there are a few key requirements:
First-time homebuyers not required: While many down payment assistance programs are limited to first-time buyers, the Chenoa Fund does not require you to be a first-time homeowner. However, at the time of purchase, you cannot currently own another home.
Minimum credit score: You’ll need a minimum credit score of 600 to qualify for the program.
Income limits: While the Chenoa Fund Maryland Down Payment Assistance does not have strict income limits, your income cannot exceed 135% of the area’s median income.
Property type: The Chenoa Fund Maryland Down Payment Assistance can be used to purchase single-family homes, condos, co-ops, manufactured homes, and duplexes (more on that below!).
How Does the Chenoa Fund Work?
The Chenoa Fund Maryland Down Payment Assistance works in conjunction with the FHA loan, which requires a 3.5% down payment from the buyer. The fund provides two options for down payment assistance: 3.5% or 5%.
3.5% Down Payment Option: This covers the entire down payment required for an FHA loan.
5% Down Payment Option: The extra 1.5% can be used for closing costs, which is a great way to reduce out-of-pocket expenses.
The Two Options for Down Payment Assistance
Once you’ve decided to take advantage of the Chenoa Fund, there are two ways the down payment assistance can be structured: repayable or forgiven.
1. Repayable Down Payment Assistance
If you choose to repay the assistance, it will be paid back over a 10-year period.
The downside to this option is that you’ll pay a 2% higher interest rate on the down payment amount. For example, if your primary mortgage interest rate is 5%, the second mortgage on your down payment will have a 7% interest rate.
This can add up over time, so it’s important to carefully consider whether this option is right for you.
2. Forgivable Down Payment Assistance
The forgivable option means you don’t have to repay the down payment assistance, and it comes with 0% interest.
However, the downside to the forgivable option is that you won’t receive the full 3.5% down payment. For instance, if you need a full 3.5% for your FHA loan, the Chenoa Fund Maryland Down Payment Assistance may only give you 2%, leaving you to cover the remaining 1.5% on your own.
Additionally, lenders may add additional fees upfront, which could require you to cover your own down payment plus any added lender charges (unless they can be rolled into the loan).
Tip: If you’re considering the Chenoa Fund Maryland Down Payment Assistance, it’s essential to consult with a lender who is registered to administer the program. They can help you decide which option makes the most sense financially for your situation.
Using the Chenoa Fund for Multifamily Homes
One of the standout features of the Chenoa Fund Maryland Down Payment Assistance is that it can be used to purchase duplexes. Unlike many down payment assistance programs that limit you to single-family homes, the Chenoa Fund allows you to buy a duplex. This is a fantastic opportunity to enter the multifamily housing market, where you can live in one unit and rent out the other to help cover your mortgage payments.
Final Thoughts
The Chenoa Fund Maryland Down Payment Assistance is a flexible and beneficial down payment assistance program, especially for buyers in need of a little extra help with the upfront costs of purchasing a home. Whether you choose the repayable or forgivable option, this program can be a great way to get into homeownership with less financial strain.
As always, if you’re thinking about using the Chenoa Fund Maryland Down Payment Assistance , I recommend working with a licensed real estate agent or a mortgage lender who can guide you through the process and help you understand your options. If you're looking for assistance in DC, Maryland, Virginia, or Pennsylvania, feel free to reach out to me!
Phone/Text: 301-835-1810
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